Bitcoin transactions can be tracked easily through blockchain explorers, but anonymous Bitcoin transactions are becoming increasingly difficult.
Bitcoin (BTC) transactions can certainly be traced. You can map Bitcoin blockchain activity using Bitcoin explorers. Since Bitcoin transactions are transparent, blockchains can be thought of as open databases that contain all transactions related to Bitcoin.
As well as Ether (ETH), SolScan and Etherscan, other cryptocurrencies like Ether (ETH) and Solana (SOL) have blockchain explorers of their own. Using these explorers, you can see how much crypto was sent and which addresses were involved in the transaction, as well as information about the transactions on the blockchain. Many people believe that Bitcoin transactions can still be anonymous despite the blockchain’s transparency.
Know Your Customer (KYC) rules are being implemented in more and more countries, which require traders to disclose their identities. When you disclose your identity, the government has a much easier time discovering what transactions you have made and what is in your Bitcoin wallet.
Traders will need to provide personal data to a central exchange in order to trade there. It is therefore possible to link Bitcoin addresses to personal information. It is always possible to view previous Bitcoin transactions since the data isn’t deleted.
What Makes Bitcoin Traceable?
Every transaction on Bitcoin’s blockchain is publicly stored on a distributed ledger, so Bitcoin transactions can be traced.
The tracking of Bitcoin transactions and their associated identities has been the subject of various studies. In spite of the fact that cryptocurrencies allow some degree of anonymity, it is difficult to send transactions through the Bitcoin blockchain completely anonymously. Despite their openness and accessibility, blockchains remain a closed system.
Money flows can be tracked easily with blockchain’s transparency. It is possible to trace back and trace transactions in the future if the identity behind a wallet address is known. You can view the details of all these transactions. The amount that was sent, the date when it was sent, and the wallet to which it was sent can all be seen in this way.
Bitcoin Transactions: How Are They Traced?
By tracing the identity behind a Bitcoin wallet address, governments can detect fraudulent BTC transactions more easily.
Governments around the world have seized millions in cryptocurrencies in recent years. Cryptocurrencies such as Bitcoin can be purchased anonymously thanks to blockchain technology, which was seen as an opportunity by criminals.
It can be said that Bitcoin transactions are not entirely anonymous and this did not work out well for many fraudsters. As a result of these events, legislation in this area has been tightened and fraud investigations have been intensified.
Transacting with Bitcoin wallets whose identities are unknown allows transactions to be traced quickly, but finding out who the wallet belongs to can take time. It has already become much easier to trace the identity of someone who wants to exchange cryptocurrencies for United States dollars.
Can You Search For A Bitcoin Wallet Address?
A Bitcoin explorer can be used to find Bitcoin wallet addresses. Crypto addresses, however, do not necessarily reveal the owner’s identity.
You can’t search a Bitcoin wallet if you don’t have any identifying information. Using a blockchain explorer, transactions and addresses are easy to find, but finding who owns a wallet address can be a challenge.
Because Bitcoin wallet addresses are not anonymous, they are called pseudonyms, aliases that are different from a person’s actual name since they can be hard to find. There’s no link between the data and identity, but it’s still possible to trace a pseudonym or an identity.
